President Donald Trump has escalated his trade dispute with Canada by announcing an additional 25% tariff on Canadian steel and aluminum, bringing total duties to 50%. This move, which takes effect March 12, comes in direct response to Ontario’s 25% levy on electricity exports to the US.
Trump’s pronouncement, delivered in a social media post, also includes a striking suggestion that Canada should join the United States as its “cherished Fifty First State.”
“Based on Ontario, Canada, placing a 25% Tariff on ‘Electricity’ coming into the United States, I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA,” he wrote.
He further insisted that Canada immediately remove what he termed an “Anti-American Farmer Tariff” of up to 390% on certain US dairy products. He warned that a “National Emergency on Electricity” would be declared if Canada failed to comply, paving the way for rapid American countermeasures.
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Ontario Premier Doug Ford dismissed Trump’s move as an “unprovoked attack” and vowed to maintain the province’s duties on US electricity.
“We will not back down. We will be relentless,” Ford said, emphasizing that Canada would not capitulate to Washington’s demands.
The Dow Jones Industrial Average dropped more than 400 points following the news, while the S&P 500 and Nasdaq Composite also fell.
In his post, Trump also took aim at Canada’s reliance on the US for defense, claiming that Washington effectively subsidizes Canadian security by more than $200 billion each year. He argued that a formal merger would resolve all trade disputes, eliminate tariffs, and reduce Canadian taxes.
“The artificial line of separation drawn many years ago will finally disappear…your brilliant anthem, ‘O Canada,’ will continue to play, but now representing a GREAT and POWERFUL STATE within the greatest Nation that the World has ever seen!” he added.
Investors have been wary of mounting tariffs and the potential for broader recession risks. Companies such as General Motors and Ford, which operate manufacturing facilities on both sides of the US-Canada border, may face significant upheaval if new automotive tariffs materialize on April 2. Trump has threatened that higher tariffs could “essentially, permanently shut down the automobile manufacturing business in Canada.”
Information for this briefing was found via CNBC and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
